On July 31, 2025, Legislator Priscilla Vindas (Frente Amplio) presented Bill No. 25.113 to the Legislative Assembly, which proposes adding Article 30 bis to the Labor Code.

The proposal establishes that full payment of all amounts due upon employment termination must be made within a maximum of eight calendar days from the end of the employment relationship. Currently, the law does not set a specific deadline; it only states that payment must be made immediately or within a “reasonable period,” which case law has interpreted as up to one month.

Status: The bill is pending assignment to a legislative committee for review and discussion. It has not yet been approved and is not currently in force.

Importance: If approved, this reform would provide greater legal certainty for employees and employers by establishing clear rules for severance payment and other termination-related amounts.

Legal Support:

https://files.constantcontact.com/fe1f169f101/c5e59ae3-6daf-45e5-bc0a-35779d4e4f1e.pdf

Labor Migration in Costa Rica: What a company should know before hiring foreign nationals.

In Costa Rica, foreign nationals are only authorized to work legally if they hold an approved immigration status. This status grants them full labor rights equal to those of Costa Rican nationals.

Below are answers to some of the most frequently asked questions on this subject:

1. ¿Who can work legally?

Foreign nationals may be hired if they hold any of the following immigration statuses:

i. Permanent Residency

ii. Temporary Residency

iii. Approved Refugee or Asylum Status

Individuals under these categories may work and must be granted equal treatment in all aspects of employment.

2. ¿Who Is Responsible for the application process?

The employer is responsible for processing the work permit with the General Directorate of Immigration and Foreign Affairs.

No fees or deductions related to this procedure may be charged to the worker.

3. ¿Where should the application be processed?

At the General Directorate of Immigration and Foreign Affairs in La Uruca or its regional offices.

4. ¿What happens if the employee does not have a Permit?

i. A foreign worker without valid documentation may be subject to fines or deportation.

ii. The employer may also be sanctioned for hiring someone with an irregular status.

5. ¿Does an employee lose rights without a permit?

No. Even if the work is irregular, the worker retains all labor rights and may file complaints or request advice from the Ministry of Labor.

6. ¿What rights do foreign employees have?

All workers in Costa Rica, regardless of nationality, are entitled to:

i. Minimum wage

ii. Paid vacation and annual bonus (Christmas bonus)

iii. Notice period and severance pay

iv. Social security coverage (CCSS)

v. Occupational risk insurance (INS)

vi. One day of rest per week

vii. Decent and safe working conditions

Legal References:

i. Political Constitution, Article 68

ii. Labor Code

iii. Law No. 8764 – General Law on Immigration and Foreign Affairs

iv. Executive Decree No. 19010-G

The content of this newsletter is merely informative, that´s why it cannot be used under any circumstances as advice on the matter described in it. If you need advice on any of the aspects discussed, our team of professionals will be willing to assist you. contacto@jadelrio.com